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Title: Bank on Students Emergency Loan Refinancing Act
Vote Smart's Synopsis:
Vote on a motion to invoke cloture on a motion to proceed to debate on a bill that authorizes certain individuals to refinance student loans and establishes a tax for high-income individuals.
More Info About this Vote
- Requires the Secretary of Education to establish a program that authorizes a “qualified borrower” the opportunity to refinance the following types of loans (Sec. 101):
- Federal Family Education Loans;
- Federal Direct Loans; and
- Certain private education loans.
- Defines “qualified borrower” as individual who entered into a certain type of loan described in the provisions of the bill prior to July 1, 2013 and an individual who meets the eligibility requirements established by the Secretary (Sec. 101).
- Requires the Secretary to establish eligibility requirements based on income or debt-to-income ratio that provides refinancing to borrowers with the greatest financial need (Sec. 101).
- Requires the following loans to be refinanced at an interest rate equal to the rate issued to an individual from July 1, 2013 to June 30, 2014 for each respective loan (Sec. 101):
- Federal Direct Stafford Loan;
- Federal Direct Unsubsidized Stafford Loan; and
- Federal Direct PLUS Loan.
- Requires the Secretary to determine the interest rate for any Federal Direct Consolidation Loan using a certain calculation as described by the provisions of this bill (Sec. 101).
- Requires the interest rate for a refinanced private education loan to be equal to the rate for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans issued to undergraduate students between July 1, 2013 and June 30, 2014 (Sec. 101).
- Establishes a tax for a “high-income taxpayer” that is 30 percent of the individual’s adjusted gross income after his or her modified charitable contribution deduction, beginning the taxable year after December 31, 2014 (Sec. 202).
- Defines “high-income taxpayer” as an individual with an adjusted gross income for a taxable year over $1 million or over $500,000 if the individual is married and files a separate tax return (Sec. 202).
NOTE: THIS IS A VOTE TO INVOKE CLOTURE ON A MOTION TO PROCEED, WHICH SENDS THE LEGISLATION TO THE FLOOR OF THE SENATE FOR DEBATE AND AMENDMENT. A MOTION TO PROCEED ALONE REQUIRES A MAJORITY FOR APPROVAL. HOWEVER, THE MOTION CAN BE FILIBUSTERED, AND WHEN THIS OCCURS, A CLOTURE VOTE IS NECESSARY TO VOTE ON THE MOTION TO PROCEED. A THREE-FIFTHS MAJORITY OF THE SENATE IS NECESSARY TO INVOKE CLOTURE.